Coventry Pays $10M To End Suit Over Medicare Plan Setbacks

By Daniel Wilson

Law360, New York (May 22, 2013, 2:41 PM ET) -- Coventry Health Care Inc. has agreed to pay $10 million to resolve a consolidated putative class action accusing the company of misleading investors over setbacks to its Medicare fee-for-service plans, according to documents filed Monday in Maryland federal court.

The settlement deal, reached after more than a year of mediation and settlement negotiations, resolves claims that Coventry had failed to inform investors about teething problems with its Medicare private fee-for-service, or PFFS, plan, leading to artificially inflated financial results, according to New England Teamsters & Trucking...